Newborn health insurance is critical to the well being of your baby. Baby health policies will cover your important first steps with benefits for pediatricians, immunizations, and other costs.
Your ability to find appropriate coverage for your newborn baby will vary depending upon a number of factors. Read below for more information pertaining to your situation.
- Existing plan – Newborns may be automatically covered for 30 days
- The condition of your infant – What if your child is sick or born premature?
- Your income – You may qualify for coverage through state infant programs
- Your state of residence – Certain states have laws ensuring coverage for newborns
Newborn Insurance for Babies Born Premature
Newborn health insurance is vital should your child require care in the Neonatal Intensive Care Unit (NICU). Expenses can add up quickly.
Hospital Indemnity policies cover your stay at the hospital and will pay an additional benefit should your infant require special care. A Hospital Indemnity policy may cover your infant during the first 30 days. Be sure to file a claim for your newborn if time is spent in the NICU. An extra benefit may be paid for multiples that require specialized care. Multiples are frequently born pre-term.
You may add your child to your policy if medical underwriting is met.
Health Care Flexible Spending Accounts - can reduce your out-of-pocket costs for a variety of related relating to baby delivery costs and other expenses for care of your infant. Pre-tax dollars can cut costs not covered by your newborn health insurance. Make sure you change your annual election to cover the extra costs. The birth of a child is considered a qualifying life event, enabling you to make changes in the middle of your plan year.
Tax deductible baby delivery costs - If your baby was recently born you might have some left-over medical bills associated with child birth: hospital deductibles, co insurance, out of network fees, etc. If your child has ongoing medical issues you can cut these costs using pre tax contributions in your employer’s Flexible Spending Account (FSA). Birth of a newborn is a qualifying life event. Change your annual FSA election to control expenses.
Infant Health Insurance in the Individual Market
Infant health insurance in the individual market has become a moving target with passage of the Affordable Care Act. The healthcare reform law mandates that insurers can no longer deny coverage for children with pre-existing conditions.
While on the surface this appears to make coverage more available, the law has had the opposite effect. Insurers now view these policies as unprofitable business, and most insurers withdrew from the market the moment the new rules went into effect on September 23, 2010. Check availability in your state.
Baby Health Insurance Cost
Health insurance for babies comes automatically during the first 30 days after birth for parents with existing coverage. This rule applies exclusively to plans covering pregnancy and maternity. This is one important consideration to individual plans containing maternity riders – which many couples must purchase prior to getting pregnant, and require additional premiums.
Make sure you notify your medical insurance company to add your newborn onto your policy. Don’t delay. Treatments that fall after the 30 day grace period may not be covered, and you may run into pre-existing condition rules if your newborn becomes sick or shows signs of developmental delays.
Your costs may be higher if this is your first child. You probably had individual, or husband wife coverage, and now are moving to single parent or family coverage. There will be an increase premium to cover your newborn baby.
If this is your second or third child, you most likely already have coverage for your newborn. Notify your carrier that you have another dependent, and your premium rates will likely remain the same.
Health Insurance for Babies with Special Needs
Children with special needs may get little value from health insurance. Should your child show signs of developmental delays you may quickly find yourself immersed in a variety of diagnostic testing – much of which may not be covered by your policy. Learn to use your flexible spending account to stretch your resources.